Agricultural and Natural Resource Economics

M Faeid M Zabid · Norhaslinda Zainal Abidin · Shri-Dewi Applanaidu ·Institutions and Economies ·2018 ·JEL: E3; Q1; Q4

The government’s recent announcement to increase blend mandate of B10 for transportation sector and B7 for industrial sector is being welcomed by experts as a huge turning point for Malaysia palm-based biodiesel industry. However, concerns remain on the viability of the industry, especially during low crude oil price period. The main aim of this paper is to assessthe impact of various blend mandates onMalaysia’sbiodiesel industry based on cost-profit, environmental, and wide economic perspectives. This research employs the causal loop diagram of system dynamics method which explains how things change through time and how actions and reactions cause and influence each other. The findings indicate the government’s effort is rational and has a positive impact on the environment and economy but a negative impact from the cost-profit perspective. The study results allow policy makers such as MPOB to understand and to predict how various blend mandate might affect not only the biodiesel industry in the long term but also the cost-profit, environmental andother economic variables.

Chakrin Utit · Anitha Rosland · M Yusof Saari · Muhammad Daaniyall Abd Rahman ·Malaysian Journal of Economic Studies ·2021 ·JEL: Q50, Q53, D57

This paper assesses the economic impact of the recycling sector in Malaysia to gauge its potential for strengthening green-based economic growth in alignment with the Sustainable Development Goals (SDGs). This study employs a comparative impact assessment to analyse the input-output multiplier and linkages using the national input-output tables for 2005, 2010 and 2015. Our results indicate that the recycling sector has high potential to transform waste to wealth from which its value-added multiplier is sufficiently high and is also reinforced with high spillover effects. The recycling sector is identified as a strategic sector, where approximately 70% of its products are embodied in intermediate demand. This sector conforms to circular economy practices as other sectors in the economy are utilising recyclables for remanufacturing purposes. The value-added footprint level of the recycling sector also shows an increasing trend that implies its growing importance in supporting the growth of other production sectors in the economy. At the sectoral level, most of the recyclables are utilised by the Wholesale and Retail Trade sector. Hence, our work emphasises the importance of prioritising the recycling sector in development plans, as well as improving and strengthening the backward linkages between the recycling sector with other production sectors.

Rokshana Shirin Asa · Ida Madieha Abdul Ghani Azmi ·Malaysian Journal of Consumer and Family Economics ·2018

The process of halal certification is dependent on the construction of what is deemed to be falling within halal parameters set by the Quran and Sunnah, being the two primary sources of Shari'ah, and supplemented with juristic opinion and issuance of fatwa by national religious authorities. In Malaysia, the authority responsible for halal certification is JAKIM while the authority responsible to provide rulings on halalness is the National Fatwa Committee. This article examines the guiding principles for the concept of halal in the Quran and Sunnah and the collection of fatwa on food products by the National Fatwa Committee. Together, the three sources constitute the yardstick to the implementation of halal in Malaysia. Using content analysis, the article analyses the meaning and construct of the three primary sources and examine the issues and concerns arising from the implementation of halal certification process in Malaysia. The article also highlights the views of Yusuf al Qaradhawi, being the most prominent scholar on the underlying principles of what constitute of halal and haram. The article concludes that whilst the Quran has outlined the general principles for the determination of halalness, there is a considerable need for guidance from the religious bodies in the form of fatwa on any recurrent issues pertaining to food products and processes.

Norimah Rambeli · Dayang Affizzah Awang Marikan · Emilda Hashim · Siti Zubaidah Mohd. Ariffin · Asmawi Hashim · Jan M. Podivinsky ·Jurnal Ekonomi Malaysia ·2021 ·JEL: C32, O44, P48, Q56

The focal aim of this paper is to examine the relationship between total energy consumption, Gross Domestic Product, urbanization, trade openness and financial development on carbon dioxide (CO2) emissions. The study focuses on two selected ASEAN countries namely, Malaysia and Singapore, due to their major contribution in CO2 emissions among other ASEAN countries, after Brunei. This study adopts the quarterly time series data from Q1:2010 to Q1:2020. By utilizing the linear ARDL method, the presence of a positive and long-term relationship was confirmed between the variables for both countries. The findings also validate the Environment Kuznets hypothesis namely, that CO2 emissions will continue to rise until the national income reaches optimum point and beyond this environment quality will begin to improve. The results established that financial development helps to reduce CO2 emissions in both the short- and long-run. Further, trade openness tends to reduce CO2 in Malaysia. For Singapore however, it reduces CO2 in the short-run but not in the long-run. In general the study reveals that the relationship between emissions of CO2 and economic development is U-shaped, for both countries. For future sustainable environment the study implies that specific financial planning towards green technology is necessary to sustain a better environment. Economic growth of the country is therefore more meaningful if accompanied with a sustainable environment for future generations.

Muralitharan Paramasua · Evelyn S. Devadason · Pardis Moslemzadeh Tehrani ·Institutions and Economies ·2019 ·JEL: H70; P48; P45

Environmental regulation is a key driver for the growth of environmental goods and services (EGS), while trade facilitates the diffusion of these goods and services. There has been no shortage of initiatives to develop the EGS sector in Malaysia.However, some policy (non-market) failures are already observed in the governance of this sector. This paper identifies the inadequacies in the regulatory framework (environmental institutions and laws) for creating an enabling environment for the EGS sector. The paper also reviews the trade direction for EGS and delineates concerns related to the sectoral approach of policy making for the sector. The findings from the documentary analyses suggest that the laws and policies related to the EGS are fragmented as they come under the purview of different agencies. As a result of this regulatory incoherence, the coordination and enforcement are weak leading to low uptake of EGS. The absence of a national policy for EGS also obscures the trade direction for this sector. The policy priority and generous support accorded to the renewable energy segment, more specifically, are also a concern given the limited and uncertain role that this segment is expected to play in global energy use.

Woei Chyuan Wong · Abd Halim Ahmad · Shamsul Bahrain Mohamed-Arshad · Sabariah Nordin · Azira Abdul Adzis ·Malaysian Journal of Economic Studies ·2022 ·JEL: G32

This paper examines the determinants of Malaysian listed firms’ environmental, social and governance (ESG) performance during the period 2005–2018. We focus on individual firms’ continuous efforts to improve their ESG scores once they are ESG rated. Panel fixed effect results reveal that the number of years since a firm was first included in Bloomberg’s ESG score is positive and significantly related to its ESG performance. We interpret this as evidence of firms’ deliberate efforts to improve their ESG scores once they fall under the radar of a third-party ESG rating agency. This finding underscores the importance of third-party rating agency in fostering greater corporate sustainability. We contribute to the literature that posits that ESG third-party rating agency can lead to higher level of ESG practices of the rated firms.

Zuraini Anang · Jaharudin Padli · Noorhaslinda Kulub Abdul Rashid · Roseliza Mat Alipiah · Haslina Musa ·Jurnal Ekonomi Malaysia ·2019

Water becomes a crucial issue in the 21st century because of rising population and increasing development. Water is needed for agriculture, energy production, recreation, and manufacturing. This study investigates the impact of economic indicators and climate change on water demand for 13 states in Malaysia. Using annual data from 2007 to 2015, the panel data approach is used to assess the impact of these determinants on water demand. The dependent variable is water resources, and independent variables comprise real income, total consumption per capita, agriculture sector, population density and climate change. The real income is a nonlinear equation and indicates a threshold in economic development because the welfare of residents and industry will decline after the optimum point due to the shortage of water resources. The results indicate that total consumption per capita, agriculture, and population density have a positive impact on water demand. The agriculture sector exerts high demand on water resources. The climate change is a correct sign that represents an increase in demand for water resources during dry periods and leading to water stress. This fnding is useful for improving the prediction of climate change to managing the water resources sustainably, particularly in the agriculture sector

Sze Ying Loo · Mukaramah Harun ·Malaysian Journal of Economic Studies ·2019

This study examines the effects of global economic policy uncertainty (EPU) on Malaysia's macroeconomic indicators. Three substantive findings emerged from our inquiry based on a multivariate generalized autoregressive conditional heteroscedasticity (GARCH) model: (1) Domestic uncertainty - in nominal and real terms - seems to have no material impact on the macro-economy after controlling for global uncertainty. (2) Fluctuations in the global EPU are more important than domestic uncertainty in predicting a country's macroeconomic variables, particularly output and CPI-based inflation. The macroeconomic variables carry signs as per theoretical expectation. (3) The model predicts that external shocks exhibit a much larger impact on macroeconomic variables than those shocks originating from domestic markets. The results have deepened our insight on how the real variables correlate with external uncertainties and the fitful recovery in the recent past.

Sivagami Arokiam · Sivachandralingam Sundara Raja ·Institutions and Economies ·2019 ·JEL: J00; I30; J50; J81; J68

Given the path-dependent nature of development, it is instructive that one tracks the historical pathways and the multiple moments in time to explain the past events that resulted in the present socioeconomic state of the Indian plantation workers in Malaysia. This study aims to unfold thehistorical events of the Indian plantation labourers from the colonial periods until the 1990s that were instrumental in understanding the Indian socioeconomic conditions. In doing so, the narrative was build based on different development stages and the governing environment in which the Indian plantation labourers were positioned. The narrative can capture the dynamics of historical events that lead to the socioeconomic problems of plantation workers. The evidence shows that the historically prolonged neglect has contributed to the challenging socioeconomic conditions of plantation workers, whichwere path-dependent. Indeed, the fate of plantation workers has not changed despite the takeover of plantation estates through state intervention. The rentier politics undermined the long-term socioeconomic progress of the Indian workers. Besides, the socioeconomic situation of the workers was further impacted by the closure of estates and the influx of foreign workers, which has consequently led to forced migration to cities. Historically, the institutional role(policies and other agents)was limited to uplifting the Indian plantation labourers. The socioeconomic challengescontinued during the 1990s and 2000s and marginalised the ignored Indians, i.e., the plantation labourers.The persistent institutionalfailures left no room for changes which resulted in the socioeconomic inequality of plantation workers.

Norlin Khalid · Hakimah Nur Ahmad Hamidi · Sharmila Thinagar · Nur Fakhzan Marwan (Universiti Teknologi MARA (UiTM) Kedah) ·Jurnal Ekonomi Malaysia ·2018

This paper aims to forecast the performance of crude palm oil price (CPO) in Malaysia by comparing several econometric forecasting techniques, namely Autoregressive Distributed Lag (ARDL), Autoregressive Integrated Moving Average (ARIMA) and Autoregressive Integrated Moving Average with exogenous inputs (ARIMAX). Using monthly time series data spanning from 2008 to 2017, the main results revealed that ARIMAX model is the most accurate and the most efficient model as compared to ARDL and ARIMA in forecasting the crude palm oil price. The results also show that the spot price of palm oil is highly influenced by stock of palm oil, crude petroleum oil price and soybean oil price. The empirical findings provide some insights for decision making and policy implementations, including the formulation of strategies to help the industry in dealing with the price changes and thus enable the Malaysian palm oil industry to continue dominating the international market.

Bakti Hasan-Basri · Zaiton Samdin · Awang Noor Ghani ·Jurnal Ekonomi Malaysia ·2020

Mangrove forest provides ecosystem services for human well-being such as fish and non-fish products, timber and non-timber products, medical plants, and dyes. Despite the important services provided, mangrove forest size in the country is reducing at an alarming rate. The mangrove forest is often overlooked in policy decision makings because the ecosystem services’ monetary values are not available in the market. Hence, we undertake this study to value the benefits of Mangrove Forest Ecosystem Services in Kuala Perlis, Perlis. We used the double-bounded Contingent Valuation Method (CVM) to value the ecosystem services provided. We interviewed 256 respondents, asking them whether they are willing to donate to the mangrove conservation program at various bid prices. Besides, we also sought their opinions on issues related to mangrove forest. The results show that the respondents are willing to donate up to MYR18.31 for the mangrove forest conservation program. Considering 75% of Perlis’ adult populations are willing to donate, the donation’s total collection would be MYR3,453,724 or MYR81,861 per hectare per year. The amount of respondents’ donation is found to be positively correlated to the variables of the conservation program. This finding provided an important message to policymakers on managing the fund of mangrove forest conservation.

WAN NORHIDAYAH W. MOHAMAD · KEN WILLIS · NEIL POWE ·International Journal of Economics and Management ·2018 ·JEL: Q51; Q57

Accounting for ignored attributes, or attribute non-attendance (ANA), in discrete choice experiment (DCE) is believed to produce more reliable willingness to pay (WTP) estimates. However, there is evidence that respondents who claimed to have ignored some attributes may simply have assigned them lesser importance. To explore this issue in the context of tourism research, a new follow-up question is used to investigate whether the respondents have ignored certain attributes or just assigned the attribute as of lesser importance when responding. Three different mixed logit (MXL) models were estimated and compared. Results generally indicate that some respondents do indeed ignore certain attributes, and some of them put less emphasis on certain attributes when making decisions. Comparison of the different MXL models reveals different WTP estimates, suggesting the importance of considering an appropriate method to deal with ANA.

Bee Hui Soh · Ghee-Thean Lim · Soo Y Chua ·Malaysian Journal of Economic Studies ·2021 ·JEL: B27, F14, O13, Q17, Q22

Malaysia, one of the global major fish producers, has highly traded fisheries products given its many water bodies. Nonetheless, it faces a serious fish trade deficit, implying that the Malaysian fisheries sector might lose its competitiveness in the global market. This paper adopts a modified constant market share (CMS) analysis, which incorporates a net-share approach index and geometric framework, to measure the export competitiveness of the Malaysian fisheries sector. The findings reveal that half of the fisheries products exhibit optimistic export competitiveness. Malaysia reflects the strongest competitiveness in exporting frozen fish and the least competitiveness in the export of crustaceans. Additional effort and attention on those less competitive groups of aquatic invertebrates, live fish and crustaceans are required to improve the export performance. Application of the modified approach is highly proposed as it is not only a simple measurement that gives relatively more accurate results but also succeeds to overcome inconsistency in the traditional approach. The findings provide evidence of unrealised fish export potential regarding product categories, which helps policymakers, traders and marketers to develop their long-term strategic plans and enhance the export competitiveness of the fisheries sector in Malaysia.

Abu bakar Hamid Danlami · Shri-Dewi Applanaidu · Rabiul Islam ·Environment, Development and Sustainability ·2018

There exists a high global concern in different nations on environmental sustainability especially at the focal stage of increased economic growth and development process due to high level of environmental degradation and pollution. The major aim of this study was to empirically examine how to minimise carbon emissions (CO2) in Malaysia which are mainly caused by energy production, fossil fuel consumption, population density and economic growth. The study adopted the method of autoregressive distributed lag bound testing approach to analyse the data for the period 1971–2011. The study found that economic growth in Malaysia has a direct relationship with CO2 emissions in both the short run and the long run. Similarly, there is a positive relationship between fossil fuel consumption and CO2 emissions over the same period. Population density was found to have positive impacts on CO2 emissions. Contrarily, the relationship between the activities of energy production and pollution is negative in the long run. The study recommends that a targeted GDP growth rate should be set with the consideration to avoid more environmental pollution. In addition, the positive impact of fossil fuel consumption on the environmental pollution implies that there is a need to make and implement policies that will encourage the use of public transportation system more than private transportations. That is, the unnecessary use of private vehicles should be discouraged in order to reduce the extent of fossil fuel consumption.

Mohd Azwan Zainol · Zakaria Abas · Ahmad Shabudin Ariffin ·International Journal of Supply Chain Management ·2019

This paper conceptualizes the innovative supply chain integration and business performance of aquaculture contract farming setting in Malaysia. Based on the SCM philosophy, it highlights three related variables of supply chain integration, namely: external integration with suppliers, external integration with customers and supply chain risks, and technological innovation, and the relation amongst the variables in focus that could produce promising business performance. Hence, ability to conceptualize, observe and give due recognition to the possible relation amongst these variables in question by the prospective aquaculture contract farming participants that could bring about an insightful engagement for the betterment of the aquaculture business performance.